01718cam a22002417 4500001000600000003000500006005001700011008004100028100002500069245012700094260006600221490004100287500001500328520075400343530006101097538007201158538003601230700001901266710004201285830007601327856003701403856003601440w3785NBER20180319110608.0180319s1991 mau||||fs|||| 000 0 eng d1 aBorenstein, Severin.10aCompetition and Price Dispersion in the U.S. Airline Industryh[electronic resource] /cSeverin Borenstein, Nancy L. Rose. aCambridge, Mass.bNational Bureau of Economic Researchc1991.1 aNBER working paper seriesvno. w3785 aJuly 1991.3 aThis papers analyzes dispersion in the prices that an airline charges to different customers on the same route. Such variation in airlines fares is substantial: the expected absolute difference in fares between two of an airline's passengers on a route averages thirty-six percent of the airline's average ticket price on the route. The pattern of price dispersion that we find does not seem to be explained solely by cost differences. Dispersion is higher on more competitive routes, possibly reflecting a pattern of discrimination against customers who are less willing to switch to alternative flights or airlines. We argue that the data support an explanation based on theories of price discrimination in monopolistically competitive industries. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web.1 aRose, Nancy L.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w3785.4 uhttp://www.nber.org/papers/w378541uhttp://dx.doi.org/10.3386/w3785